Koll Real Estate to Offer
Debtholders 90% Control

NEWPORT BEACH, Calif. -- Koll Real Estate Group Inc. said it agreed to a financial reworking that would cede 90% control of the company to debenture holders.

The proposed swap, valued at about $150 million at the current stock price, is subject to shareholder approval and acceptance by most holders of its debentures. It is the latest step in a tangled history of one of the largest undeveloped coastal properties in Southern California. The exchange, which would ease overhanging debt on the company, would bring a step closer...